Hanwha Asset Management Raises Monthly Distribution of PLUS High Dividend Stock ETF by 10.3%

Hanwha Asset Management announced on January 29 that it has increased the monthly distribution per share of the PLUS High Dividend Stock Exchange Traded Fund (ETF) by approximately 10.3% to 86 won.

The PLUS High Dividend Stock ETF is the largest domestic equity high dividend ETF in Korea, with total net assets of 1.9472 trillion won as of the 27th. The fund invests in the top 30 stocks with the highest expected dividend yields. Since its listing in August 2012, the distribution (dividend) has grown at an average annual rate of 10.5% over about 13 years.

Last year, the monthly distribution was raised twice, from 63 won to 73 won in May, and from 73 won to 78 won in July. Assuming the monthly distribution remains at 86 won this year, the annual distribution rate based on the closing price on the 27th (23,710 won) is approximately 4.4%.

The PLUS High Dividend Stock ETF provides predictable fixed income returns. It has established itself as a leading dividend growth ETF, enabling retirees who need living expenses to invest with stability.

The PLUS High Dividend Stock ETF distributes only stock dividends as its source of distribution, without any capital gains or excess profit distributions from underlying asset trading. The fund aims for sustainable dividend growth, with both principal and distributions growing together.

As of the 27th, the ETF’s period returns, based on the adjusted price assuming reinvestment of distributions, are 18.3% over the past three months, 19.6% over six months, and 69.3% over one year.

Dividend-friendly policy momentum is expected to continue, including the government's corporate value-up program, amendments to the Commercial Act in three phases, and the separate taxation of dividend income. Given that many dividend stocks are undervalued, there are expectations that institutional improvements could lead to a re-rating (revaluation) of these stocks.

Kim Jeongseop, Head of ETF Business Division at Hanwha Asset Management, stated, "Dividend stocks, which can be received as a form of living expenses like a pension, will continue to be a core asset for many investors. As the separate taxation benefit for dividend income from eligible high-dividend companies is applied starting this year, we expect demand for dividend stock investments to remain strong."

This content was produced with the assistance of AI translation services.